The price of Bitcoin has once again reached more than $8,000, continuing the positive momentum that has been building for more than a week. Notably, Bitcoin’s performance currently diverges from that of other altcoins, many of which are down today.
More specifically, the price of Bitcoin is $8,006 at the time of writing. This represents a gain of 3.33% over the previous 24 hours period. Notably, this is the highest level seen since the 24th of May this year, meaning Bitcoin has reached a 60-day high.
This recent reversal in the price trend of Bitcoin would seem to suggest that the long decline since May 24 and the bearish market sentiment directed towards Bitcoin might have been broken.
If one compares the current price of Bitcoin with the year-low of $5,785 seen just a month ago, this represents marked gains of more than 38% in 30 days.
Nonetheless, the price of Bitcoin is still down almost 53% from its year-high seen in February, when the currency was valued at more than $17,000. Still, the recent gains seen during the last month speaks volumes to the quick price reversals that Bitcoin is capable of.
Moreover, it is not only the price of Bitcoin that is increasing. According to data from the cryptocurrency exchange Bitfinex, Bitcoin trading volume is also up, as it increased on the site from $4.9 million to $12.9 million within a mere four hours.
In addition to this, it is also important to note that the dominance of Bitcoin, in terms of market capitalization, has continued to increase in tandem with the coin’s recent price increases.
According to data from CoinMarketCap, the start of 2017 saw the market dominance of Bitcoin – in terms of market capitalization – dip below 75% for the first time, as other cryptocurrencies started achieving serious market capitalizations.
Furthermore, the impressive Bitcoin price gains during late 2018 saw the relative market capitalization of Bitcoin surpass more than 50%. Bitcoin’s share of the total cryptocurrency market capitalization has, since then, been firmly pegged below the 50% line.
However, the recent increases in the price of Bitcoin have brought the relative share of the cryptocurrency’s market capitalization back towards 50%, reaching 47% at the time of writing.
This comes off the heels of a series of positive Bitcoin and cryptocurrency-related news, many of which Toshi Times covered last week. Since then, there has been a steady stream of likewise positive news.
To name a few, the Financial Services Commission of South Korea has decided to create a cryptocurrency department; news has broken that the trading volume of Bitcoin futures has increased massively, and the Bank of Canada has stated that the possibility of issues arising from cryptocurrency double-spending is ”unrealistic”.
Moreover, many are speculating whether upcoming Bitcoin ETFs (exchange-traded funds) could prompt a massive influx of capital stemming from institutional investors. An EU study has also recently found that the competition in the cryptocurrency market is ”good”.
It remains to be seen whether this bullish market sentiment continues, but things are undoubtedly looking up at the moment.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.